Topic:"Capacity Costs" in M04265

AVAILABILITY Available for any Customer being served by the Company under Rate 6T, Rate 9T or Rate 9B when in the judgement of the Company: (a) it is economically feasible and practical for the customer to utilize an energy source other th...

AI summary This rider provides service availability under specific conditions for customers served by the Company under Rates 6T, 9T, and 9B. It is available when bypassing the Company's electric service is economically feasible or if a loss of load is imminent. Customers must provide affidavits and evidence of intent to bypass, and the rider is available until January 1, 2001, or until capacity reserve margins fall below acceptable levels.

MARGINAL CAPACITY COST

AI summary The text mentions 'marginal capacity cost,' which refers to the cost of adding incremental capacity to the energy system. This concept is central to discussions around energy generation, grid planning, and resource allocation.

($/kW-YR) YEAR GENERATION TRANSMISSION DISTRIBUTION 1996 $0.00 $26.34 $9.85 1997 0.01 26.86 10.05 1998 0.09 27.40 10.25 1999 0.33 27.95 10.46 2000 1.42 28.51 10.66 2001 4.29 29.08 10.88 2002 13.98 29.66 11.10 2003 24.75 30.25 11.32 2004 14...

AI summary The document provides a table showing ($/kW-YR) costs for generation, transmission, and distribution from 1996 to 2018. It also explains that marginal generation capacity costs were calculated using the Peaker method, which involves capital costs of combustion turbines weighted by expected loss of load hours relative to a planning target. Marginal energy costs were derived from EMA's production costing module (GAF) in the PROSCREEN II models.

The marginal transmission cost is based on a statistical approach, in which a linear regression of total transformer kV.A installed, at both 138 kV and 69 kV voltage levels, against annual System Maximum Demand is carried out. The 1984 rev...

AI summary The document outlines the methodology for calculating marginal transmission and distribution costs, including the use of linear regression, capital cost updates, inflation and discount rates, and operating and maintenance expenses. It also explains how customer costs are derived from meter and service extension costs, with a carrying charge applied.

17 Methods used to Estimate Marginal Generation Capacity Costs 18 19 Marginal costs are composed of generation, transmission, distribution, and customer 20 costs. Marginal generation costs have two components-energy and capacity. The 21 en...

AI summary The document discusses methods for estimating marginal generation capacity costs, which include both energy and capacity components. The energy component involves fuel and variable operating costs, while the capacity component depends on the approach used, such as the long-run method.

21 4Technically, the peaker method does not fit the short run definition because it assumes new capacity 22 can be constructed. Toe method was originally developed as a proxy for short-term marginal capacity 23 costs-where the question at...

AI summary The peaker method calculates short-run marginal capacity costs by assuming new capacity can be constructed, typically using a combustion turbine or a capacity contract. It focuses on reliability rather than electricity generation and assumes additional demand increases the need for new capacity, with adjustments allowed for excess capacity.

MR. ROBERTSON Well, of course, a good deal may exist because of over-capacity at one point in time.

AI summary Mr. Robertson mentions that over-capacity at a certain point in time may lead to a good deal, suggesting potential implications for resource allocation or pricing.

DR. CHAMBERLIN, CROSS-EXAM. BY MR. MACDOUGALL 2785 allocation studies would reflect 65% of fixed costs classified to energy. - I didn't review them, though. So, I'm I mean, in Ā. concept if I'll agree with this. In concept if capacity cost...

AI summary Dr. Chamberlin discusses the allocation of capacity costs to energy in allocation studies, noting that if 65% of fixed costs are classified to energy, this could lead to over-allocation and affect pricing. He also mentions that revenue reconciliation and rate design play a role in how these costs are ultimately reflected.

DR. CHAMBERLIN, CROSS-EXAM. BY MR. MACDOUGALL 2787 more of an issue of believing they can take care of capacity requirements and needs in the long run through contracting mechanisms and things like that. - Q. Would you expect an interrupti...

AI summary The discussion revolves around interruptible customers and their capacity requirements, focusing on how they can manage firm capacity needs over the long term and the appropriate pricing based on contract terms, including short-run and long-run marginal capacity costs.

tionale for inverted rates has been applied too broadly. Residential cus- The efficiency criticism of declining block rates has been incorrectly applied, and has therefore led to poor policy choices. tomers in each service area face invert...

AI summary The text argues that the efficiency criticism of declining block rates has been misapplied, leading to poor policy decisions. It highlights that residential customers in various service areas face inverted block tariffs in both summer and winter. Load data show significant seasonal peak demand differences, suggesting that new combustion turbines may not be needed for off-peak seasons, affecting cost allocation and tariff design.

Source: Sable Offshore Energy Inc. and Maritimes & Northeast Pipeline. This lack of capacity is largely due to structural issues in the CBRM economy. The economy is heavily dependent on resource-based industries. The basis and opportunity...

AI summary The lack of local capacity in the CBRM economy is attributed to its reliance on resource-based industries and the absence of a foundation for manufacturing and service sectors. While some local spending is expected during the construction of the CBRM lateral and distribution system, a significant portion of the $70 million capital cost will be spent outside Nova Scotia.

Table A-5 CBDC Coal Production, 1993-1998 1998 1997 1996 1995 1994 1993 Sales (000 tonnes) 5 NSPI Export Other 1,600\ 0 0 2,368 25 21 2,424, 135 21 2,392 852 25 2,221 909 31 2,104 1,852 102 Total 1,600 2,414 2,580 3,269 3,161 4,058 \ Appro...

AI summary Table A-5 presents coal production data for the Cape Breton Development Corporation from 1993 to 1998, showing sales in thousands of tonnes. The data includes exports to NSPI and other destinations, with notable figures for each year.

INTRODUCTION The New Brunswick Power Corporation (NB Power) applied on Feb. 4, 1993 for a change in its rates to provide an incentive rate for large industrial customers. More particularly, this incentive rate was to promote in-province ec...

AI summary NB Power applied for a rate change in 1993 to offer a 50% discount on demand charges for large industrial customers, aiming to stimulate economic growth. The incentive would be available until 1998 and was intended to help utilize excess generating capacity. NB Power argued that the rate would benefit all customers by recovering incremental costs and reducing the need for revenue from other sources.

NIPSCO construction and that consequently deferral of construction and coordination of the addition of cogeneration facilities would produce greater benefits than current construction of cogeneration. Mr. Jeffrey R. Bailey, Assistant Chief...

AI summary The Commission discusses the impact of deferring cogeneration facility construction on NIPSCO's operations and ratepayers. It notes that while cogeneration may offer long-term benefits, current capacity is sufficient, and losing existing customers could lead to increased costs for remaining ratepayers. The Commission suggests considering methods to retain existing load.

ed until Petitioner's next rate case. However, in the absence of dear and convincing evidence to the contrary, Petitioner's shareholders should continue to bear the total risk of loss due to Rider GA. 10. Additicmal Terms and Condilions. P...

AI summary The Commission discusses the conditions and limitations of Rider GA, emphasizing that extensions should be allowed if conditions warrant and that Rider GA should not apply to contract demand under existing non-cancellable contracts. The risk of loss should remain with Petitioner's shareholders unless there is clear evidence otherwise.